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Bibek Bhandari

Many tourism entrepreneurs in Nepal have welcomed the arrest of executives accused of orchestrating fake rescue operations on the country’s Himalayan trekking trails and swindling millions of dollars from insurers.
The arrests follow a nearly three-month investigation by Nepal Police’s Central Investigation Bureau into a long-running insurance fraud scheme where travel and rescue companies allegedly staged helicopter evacuations from the mountains to pocket insurance money from foreign travel insurance companies.
The racket has drawn international scrutiny, and travel entrepreneurs say it poses a reputational risk to the country, which is known for its adventure tourism.
“We’re taking the right step by arresting those involved in wrongdoings,” Raj Gyawali, founder of the Socialtours travel company, told This Week in Asia. “It’s common knowledge in the industry that such scams are prevalent, but we haven’t been able to do much without any proof. So, the cleaning up of our industry is very much required.”
The Central Investigation Bureau arrested six Nepali nationals in late January, accusing them of creating forged documents, including passenger manifests for helicopter rescues and inflated medical bills, to file fraudulent insurance claims. Those arrested served as directors and senior managers at three local travel and rescue companies.
Home to eight of the world’s tallest peaks, Nepal attracts mountaineers and trekkers from across the world. Hundreds of them are rescued from high-altitude terrains every year and flown to the capital, Kathmandu, due to weather-related incidents or medical emergencies.
Manoj Kumar KC, the bureau’s chief, said that helicopters often carried additional passengers on medical evacuation flights and some companies issued multiple invoices to cover separate rescues for the same flight. The scam totalled nearly US$20 million, based on evidence from 600 cases collected between 2022 and 2025, according to authorities.

One of the accused companies arranged 171 fake rescues out of the 1,248 flights, claiming payouts worth US$10 million, while claims for 77 of the 471 flights by another company were found to be fraudulent.
“This might just be the tip of the iceberg,” KC told This Week in Asia. “The crimes committed are not just limited to rescue companies. The investigation is ongoing, and there are many more details yet to be uncovered.”
Nepal’s fake rescue racket has been operating for years, with the government probing the malpractice in 2018. A fact-finding committee submitted a 700-page report, singling out 15 companies – including trekking agencies, helicopter providers and private hospitals – though no actions were taken against them.
“Because of a few people who are greedy for money, our country’s reputation is at stake – this is very bad news for the tourism sector,” Karma Sherpa, vice-president of the Trekking Agencies’ Association of Nepal, told This Week in Asia. “The government should cancel the license of all companies involved in the scam. There is obviously a nexus that involves many layers of people right up to the top because it takes a coordinated effort.”
In 2018, the Nepali Times newspaper reported that trekking agents often received kickbacks from hospitals for ferrying sick patients to their facilities in Kathmandu. There were also allegations that some trek leaders deliberately made their clients sick or arranged rescue helicopters for minor ailments or tired trekkers unwilling to continue on foot.

Some travel entrepreneurs warn that such fake rescues could put lives at risk by complicating genuine evacuations, as companies may prioritise “paperwork and due process over patients”.
Ang Norbu Sherpa, former president of the Nepal Mountain Guide Association, who also runs a trekking company, said that his agency relied on Europe-based doctors for online consultations to authorise evacuations, though such a process could be costly for many local companies. He added that the scams could create a trust deficit, potentially delaying rescues due to bureaucratic hurdles in securing them.
“Many countries have a central state mechanism for rescue operations, but we don’t have that in Nepal,” he told This Week in Asia. “Many private helicopters with commercial interests are involved in rescue missions here, and usually their motive is to make money.”
Gyawali favours a national body that oversees rescue missions, though he argues that the involvement of the private sector makes evacuations quicker. He blames a handful of people with “no morals and interest in tourism” for destroying the existing rescue infrastructure for extra bucks.
The government has been lax in addressing the problem, according to industry players.
An official at the Ministry of Culture, Tourism and Civil Aviation said the tourism unit was “not directly involved” with rescue missions and only “eases and facilitates” such evacuations by coordinating with various stakeholders involved. He said the onus was on the relevant trekking agencies, referring to the Central Investigation Bureau, for more information.
It will help deter future crime, benefit the tourism industry and improve Nepal’s international image
Manoj Kumar KC, Central Investigation Bureau chief
“For now, we have proceeded against those we deem have made monetary gains through illicit activities and committed crimes against state interests, as tourism is a vital pillar of our country,” KC said. “It will help deter future crime, benefit the tourism industry and improve Nepal’s international image.”
Mani Raj Lamichhane of the quasi-government Nepal Tourism Board said the recent arrests sent a strong signal that the authorities were serious about addressing the issue. Entrepreneurs from various sectors must also collaborate to root out such scams and practice “not just sustainable tourism but ethical and responsible tourism”, he added.
While some tourism entrepreneurs say they will wait to see the impact of the recent arrests in the coming tourist season in the spring, others argue that certain loopholes and political patronage of businesspeople could allow the wrongdoings to continue.
“It would have stopped a long time back if the tourist numbers had halved or if travellers were actually losing money,” Gyawali said.
“But none of that happened. So the only way to stop fake rescue scams would either be that Nepal launches its own insurance, which would be costly and take time to build trust, or sternly punish people committing such crimes rather than just naming and shaming them.”


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The suspects are believed to be among a network of scammers who have cheated insurers by staging fake rescue operations for years


The suspects are believed to be among a network of scammers who have cheated insurers by staging fake rescue operations for years.


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Mount Everest

Nepal’s tourism sector welcomes arrests in fake mountain rescues, urges tough sanctions

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The suspects are believed to be among a network of scammers who have cheated insurers by staging fake rescue operations for years

The suspects are believed to be among a network of scammers who have cheated insurers by staging fake rescue operations for years